Japan's Economy Minister Downplays Inflation Risks Amid Middle East Conflict

Japan's Economy Minister Minoru Kiuchi offered a reassuring view on inflationary risks in Tokyo, stating that the pass-through of rising costs from the Middle East conflict has been limited so far. This comes after the Bank of Japan warned about the possibility of an inflation overshoot last week.

The overall consumer price index rose 1.7% year-on-year in June, showing only moderate rises, according to Kiuchi. He emphasized that vigilance is needed for the possibility that costs could be gradually passed onto food and other consumer goods from summer through autumn.